Robbins Arroyo LLP: Acquisition of Pall Corporation (PLL) by Danaher Corporation (DHR) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Pall Corporation (NYSE: PLL) by Danaher Corporation (NYSE: DHR). On May 13, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Danaher will acquire Pall. Under the terms of the agreement, Pall shareholders will receive $127.20 in cash for each share of Pall common stock.
Is the Proposed Acquisition Best for Pall and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Pall is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $127.20 merger consideration represents a premium of only 7.2% based on Pall’s closing price on May 12, 2015. This premium is significantly below the average one-day premium of nearly 18% for comparable transactions within the past three years.
On February 24, 2015, Pall reported strong quarterly earnings results for its second quarter 2015. Net earnings were $84.4 million, an increase of 0.08% from the second quarter of 2014, and diluted EPS in the quarter was $0.78, up 4% compared to last year. Additionally, Pall has beat consensus analyst estimates for adjusted EPS, adjusted net income, and sales in three out of its last four quarters.
In light of these facts, Robbins Arroyo LLP is examining Pall’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Pall shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Pall shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.